Republic Airways Holdings Inc. · NASDAQ:RJET

Republic Airways — Shareholder Meeting (September 2013)

30 slides from Republic Airways's shareholder meeting presentation, Sep 17, 2013

1. Slide 1: Annual Shareholder's Meeting September 17, 2013

   Annual Shareholder’s Meeting September 17, 2013

2. Slide 2: Disclaimer

   Disclaimer 2© Republic Airways Holdings Inc. Statements in this presentation, as well as oral statements that may be made by officers or directors of Republic Airways Holdings Inc., its advisors, affiliates or subsidiaries (collectively or separately the “Company”), that are not historical fact cons

3. Slide 3: Agenda

   Agenda I. Review 2012 Business Results II. Review 1st Half 2013 Business Results III. Review 2nd Half 2013 Business Updates IV. Frontier Transaction Update V. 2014 and Beyond VI. Questions © Republic Airways Holdings Inc. 3

4. Slide 4: I. 2012 Results

   I. 2012 RESULTS 4© Republic Airways Holdings Inc.

5. Slide 5: 2012 Goals and Accomplishments

   2012 Goals and Accomplishments Prepare Frontier for Divestiture 5© Republic Airways Holdings Inc. • Appointed new executive leadership team • Separated key business functions • Hired Barclays as advisor • Successful completion in Q4 2012Restructure Chautauqua Place idled small jet aircraft back to w

6. Slide 6: 2012 Consolidated Results

   2012 Consolidated Results YOY improvement of >$135M excluding impairments taken in 2011 6© Republic Airways Holdings Inc. ► Successful Frontier restructuring in Q4 2011 drove significant financial improvement in 2012 ► Successful ERJ restructuring in Q4 2012 lowered operating costs of 50- seat aircr

7. Slide 7: Financial Progress 2010-2012

   Financial Progress 2010‐2012 © Republic Airways Holdings Inc. 7 Frontier ► Financial turnaround in the face of rising fuel prices ► Frontier restructuring complete in Q4 2011 • Secured > $120 million of annual improvements from labor, aircraft, maintenance, distribution cost and network/fleet adjust

8. Slide 8: Republic Segment Improvement

   Republic Segment Improvement © Republic Airways Holdings Inc. 8 ► CHQ restructuring completed in Q4 2011 ► Approximately $25 million of improvements driven by fewer aircraft, especially 50-seat aircraft, operating under pro-rate agreement at Frontier ► Cost pressures on labor, idled aircraft and mai

9. Slide 9: Frontier Segment Improvement

   Frontier Segment Improvement © Republic Airways Holdings Inc. 9 ► Network improvement drove unit revenue increases that outperformed the industry ► Unit cost improvement driven by increase in seat density and restructuring in second half 2011

10. Slide 10: II. 1st Half 2013 Results

    II. 1ST HALF 2013 RESULTS 10© Republic Airways Holdings Inc.

11. Slide 11: 1st Half Republic Pre-Tax Results (GAAP)

    1st Half Republic Pre‐Tax Results (GAAP) 11© Republic Airways Holdings Inc. ► 1H improvement due to 2012 CHQ restructuring and placing ERJs back into CPA service ► Continued cost pressures in labor expenses ► Non-fuel expenses increase in line with block hours (~5% increase) 2012 2013 Inc (Dec) ERJ

12. Slide 12: 1st Half Frontier Pre-Tax Results (GAAP)

    1st Half Frontier Pre‐Tax Results (GAAP) 12© Republic Airways Holdings, Inc. ► Fuel and Unit revenue improvements offset by slight increase in unit costs on the smaller operation and aircraft return expenses ► During 1H 2013, Frontier mgmt completed several initiatives to begin to transition to an U

13. Slide 13: 1st Half Consolidated Pre-Tax Results

    1st Half Consolidated Pre‐Tax Results 13© Republic Airways Holdings Inc. ► In 2013, Republic reported its best consolidated first half performance since acquiring Frontier in late 2009 ► Fuel as a % of total RJET revenue decreased from 27% in 1H 2012 to under 20% in 1H 2013 ► Republic segment pre-ta

14. Slide 14: III. 2nd Half 2013 Updates

    III. 2ND HALF 2013 UPDATES 14© Republic Airways Holdings Inc.

15. Slide 15: 2013 Operational Update

    2013 Operational Update 15© Republic Airways Holdings Inc. • UA Q400 CPA – Original plan to operate 32 aircraft, 28 lines and 4 spares by July 2013 – Behind schedule due to mechanical reliability challenges; may reduce total number of aircraft under CPA • AA E175 CPA flying began August 1, 2013 – To

16. Slide 16: Fleet Plan Thru YE 2013

    Fleet Plan Thru YE 2013 16© Republic Airways Holdings Inc. • Republic to add 15 E175s for AA CPA over last 6 months • Q400 forecast now at 28 total aircraft at YE 2012 • Working on alternatives for idled E190 aircraft • Frontier continues to transition to higher seat density aircraft Actual Actual F

17. Slide 17: Updating Q3 Guidance (ex-items)

    Updating Q3 Guidance (ex‐items) 17© Republic Airways Holdings Inc. Consolidated EPS $0.55 ‐ $0.65 $0.65 ‐ $0.75 Unrestricted Cash $235‐$245 million $250‐$260 million Fuel cost per gallon (net of hedges) $3.20 ‐ $3.30 No change Frontier TRASM + 1‐3% + 3‐5% Frontier CASM (excluding fuel) + 3‐5% No cha

18. Slide 18: Stable Cash Position

    Stable Cash Position 18© Republic Airways Holdings Inc. ► Consolidated unrestricted cash levels improving YOY for last 2 quarters ► Restricted cash seasonality based on Frontier sales curve; still 95-100% holdback on future sales ► Restricted cash as a % of total cash is decreasing because a reducti

19. Slide 19: IV. Frontier Transaction Update

    IV. FRONTIER TRANSACTION UPDATE 19© Republic Airways Holdings Inc.

20. Slide 20: Process Update

    Process Update • Two week extension to exclusivity granted to buyer (Through Sep 30) • Substantial progress toward definitive agreement • Both parties working diligently to satisfy all remaining conditions of the term sheet 9/17/2013 20© Republic Airways Holdings, Inc.

21. Slide 21: Potential Sale Impact to RJET

    Potential Sale Impact to RJET • Finding alternate use or sale of idled E190 Aircraft • Lost synergies post transition of services • NEO agreement and CFM engine agreement expected to be assigned to Frontier • No ongoing Republic guarantees of Frontier obligations • Indemnities in stock purchase agre

22. Slide 22: V. 2014 and Beyond

    V. 2014 AND BEYOND 22© Republic Airways Holdings Inc.

23. Slide 23: RJET's Flight Plan

    RJET’s Flight Plan 23© Republic Airways Holdings Inc. ► Two week extension to exclusivity granted (through September 30) ► Sign purchase agreement ► Close transaction in Q4 Divest Frontier Grow the Business Motivated and engaged team members Competitive cost structure across our product lines Cre

24. Slide 24: Recent RJ Contract Awards

    Recent RJ Contract Awards • Republic obtained ~ 25% market share on recent awards; Mesa, Endeavor and SkyWest each also obtained ~40 growth aircraft • AA/US merger delay will impact timing of any new awards • Republic hopes to obtain at least 25% market share of any new awards, but is hampered by la

25. Slide 25: RJET's Regional Fleet Plan

    RJET’s Regional Fleet Plan 9/17/2013 25© Republic Airways Holdings, Inc. Assumes final 4 Q400s in operation Q1 2014 Does not include any E‐Jet options being exercised in 2015 3 E190s assumed to be returned on lease in 2015 Actual Actual Forecast Forecast Pro-Forma Pro-Forma YE 2012 6/30/13 9/30/1

26. Slide 26: First Look at 2014 Republic

    First Look at 2014 Republic 9/17/2013 26© Republic Airways Holdings, Inc. • Full year effect of 2013 growth on Q400 CPA and 2014 growth on E175 AA CPA lead to 14-18% increases in Republic’s block hours and ASMs respectively • 2014 stats assumes extension of all CPA terms for ERJs under short-term CP

27. Slide 27: Fleet Risks for 2014

    Fleet Risks for 2014 27© Republic Airways Holdings Inc. • Current ERJ CPA 2014 Expirations: • Lack of a new pilot CBA makes obtaining contract extensions more difficult • Acceptance of final 4 Q400 aircraft dependent on the success of a maintenance modification program we have planned with Bombardie

28. Slide 28: VI. Questions

    VI. QUESTIONS 28© Republic Airways Holdings Inc.

29. Slide 29: Appendix

    APPENDIX 29© Republic Airways Holdings Inc. ► Reconciliations to GAAP basis accounting

30. Slide 30: Non-GAAP Reconciliation

    Non‐GAAP Reconciliation 30© Republic Airways Holdings Inc. Reconciliation of Non-GAAP to GAAP Pre-Tax Income for Republic Segment: 2011 Income (Loss) before income taxes (147.1)$ Adjustments: Impairment Charge 191.1 Ex-item Pre-Tax Income 44.0$

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